Alex Altgausen, the CEO of the NFT project, says that companies that want to shake up established industries should look into Web3 storage options.
Nonfungible Tokens (NFTs) need big improvements in the area of image hosting. When FTX filed for bankruptcy, that’s when people first noticed that NFTs were breaking. Recently, the thumbnails for NFTs on the Magic Eden market showed suspicious images instead of their real ones.
In the conversations with several business leaders to find out what they thought about how NFT projects should deal with the NFT hosting issue, which is still an issue.
Several executives in the NFT industry talked about how to avoid problems with NFT picture hosting in the future. Their ideas ranged from using solid blockchains to looking into the storage options available in the Web3 arena.
Samuel Huber, CEO of the metaverse platform LandVault, says that the problem with FTX NFTs is that the metadata was hosted with a Web2 API. Huber says that the best way for NFT projects to avoid this kind of problem is for them to use trustworthy blockchains for the NFTs themselves and store them on a distributed ledger that is not controlled by a single entity.
Even though only a few projects host the actual photos on-chain at the moment, the executive told Cointelegraph that it is very important to make sure that the metadata and files are hosted correctly. Also, he said:
“Projects should verify if the platforms are using decentralized hosting providers such as IPFS and Airweave for the metadata and any other files that are linked to the NFT.”
Alex Altgausen, who is in charge of the play-to-earn NFT game Banksters, agreed. The CEO thinks that NFT companies that want to compete with established businesses like gaming need to look into storage solutions that are already available in the Web3 area.
Altgausen says that new technologies “distribute file storage using multiple decentralized options.” No longer is it necessary to use established Web2 storage providers like Amazon Web Services or Google Cloud, because these technologies allow computers all over the world to store and serve information in a peer-to-peer network.
It can be hard for people to figure out if this could happen with the NFTs they buy. Radek Pléha, the co-founder of the NFT ticket marketplace BillionAir, says that users will need to do their own research and look into the project’s storage infrastructure to make sure this doesn’t happen to their NFTs. He went on to say, “This can include looking at reviews and feedback, as well as the project’s whitepaper and any security measures that have been put in place. Also from Pléha:
The metadata for not all NFTs is stored on the blockchain, which is a shame because primary chains may have size limits and cost more to store data on.
On August 5, the CEO of Rarible, Alex Salnikov, and the Web3 storage lead at Protocol Labs, Jonathan Victor, both talked about how there are no NFTs on the blockchain. Due to the size limits on main chains, Victor stressed the need for NFT storage solutions that don’t use the main chain. He also talked about how NFT metadata uses distributed storage networks. Salnikov, on the other hand, said that while NFT transactions are verified on the blockchain, the NFT metadata is often kept in a different place.